The complicated situation of logistics and raw materials

The unrealistic event in the Suez Canal in the Suez Canal highlighted the complexity of logistics management, which has led in many cases to a lack of supply of raw materials essential to the aluminium industry.

The suspension of navigation through the canal was temporary, but the truth is that, according to experts, shortages are a challenge that will accompany logistics in the coming months.

If we add to this the heavy dependence of the aluminium and refractory industry on Chinese bauxite, 95% of the mines currently being exploited are located in China. China's restrictive trade policies have led to price volatility and instability and even lack of supply, placing many countries in a very vulnerable position with respect to this raw material. This situation means a loss of competitiveness for many companies involved in the manufacture of refractory materials and in the production of primary aluminium.

Bauxite is therefore on the European Commission's list of Critical Raw Materials and recognises the strategic importance of the aluminium industry in supporting Europe's transition to a green and digital economy.

Despite the expected increase in recycling, primary production will still be necessary to meet the growing demand for our metal. With global demand for primary aluminium expected to increase by 50% in the next thirty years, there is a clear need for the EU to develop an ambitious and responsible global bauxite sourcing strategy. Europe currently produces only about 10% of the bauxite it processes for its primary aluminium and its dependence on imports has worsened considerably in recent years.

The risk of supply chain disruption could be minimised by maintaining a resilient, self-contained and complete European aluminium value chain. It is essential to increase recycling and promote sustainable aluminium production in Europe. We hope that the inclusion of bauxite in the list of critical raw materials will increase political attention on our value chain and foster new production capacities for both primary and secondary aluminium.

We should therefore prioritise projects that focus on the recycling of aluminium waste into secondary aluminium alloys. Europe produces more than 1 million tonnes of salt slag. This hazardous waste is recovered through a complex 5-step process, which recovers three by-products that are returned to the market: aluminium concentrates, fluxing salts and secondary aluminium oxide.

The physical and chemical characteristics of the secondary oxide suggest that it can be considered as a secondary bauxite, with 10% by weight of magnesium oxide, mostly in the form of spinel and some impurities such as halogens and fluxing salts.

Through a refining process, the undesired elements will be eliminated, obtaining a new raw material, which will be able to compete with mineral bauxites with more demanding requirements.